Concise, carefully thought-out writing is a plus. Avoid filler. Show critical thinking/analytic ability. Say enough to answer thoroughly.
Use 12 pt. font, single-spaced.
Note scoring weights in bold font following each question.
Do not discuss ANY aspect of the assignment with ANYONE until both the official deadline and any unofficial extension have passed (Wednesday, May 1, 2019 at 11:59 PM Eastern).
Write and sign a statement of academic honesty. Anything that is drawn from an outside source must be cited, based on anti-plagiarism rules.
Submit both your Word file & your RIF-AA Excel file to Bb (filename: W14 your name)
ACADEMIC HONESTY PLEDGE WRITEN OUT AND SIGNED HERE:
Compare and contrast the two risk tolerance questionnaires (links on the Week 14 Bb page). Discuss in relation to a client’s Investment Policy Statement (IPS) and the Robo vs. Human Advisor controversy that looms larger as artificial intelligence applications become increasingly sophisticated. 25%
Your life partner is a law clerk to US Supreme Court Associate Justice Samuel Alito.
She is writing a brief for Justice Alito for a patent infringement lawsuit. The plaintiff, an investment management company, claims that they invented and patented Smart Beta. The defendants are investment advisory firms who use the Smart Beta approach. She (your partner the law clerk) never took a finance course. Prepare for her a complete but concise summary of the finance issues involved. Keep it politically neutral. 25%
Your mother teaches 8th graders. Her class is working on a government-required financial literacy exercise. She asks you to visit the class to explain PASSIVE vs. ACTIVE INVESTING. Prepare by writing a detailed outline of the necessary points that must be made. REMEMBER: Your audience is 8th grade kids. Speak to them in a language they can understand, or, their teacher, your mother, will kick you out of the room. 20%
Suzie and George are 65 years old.
Each earns $115,000 working for a trade association.
Each deposits 6% of gross salary into a 403(b) defined contribution account; the trade association deposits a 3% match.
Each has $600,000 accumulated in their 403(b) defined contribution plans.
Each deposits $5,000 annually into a taxable brokerage account at Vanguard with a present balance of $100,000.
Each intends to retire at age 72 with an adequate income.
Each intends to maintain a retirement life-style equivalent to their pre-retirement life style.
(A) Perform the requisite analysis in the RIF sheet to determine if they are on track to reach their retirement goal. Assume any additional information, if needed.
(B) Explain why your analysis is a “retirement plan from hell” and what changes can be made to improve your analysis.
(C) Recommend an asset allocation for their retirement nest egg, as of their retirement date, to generate their needed retirement income. Assume any additional information, if needed. Use the AA Matrix. 30%
Cite this essay
Financial Decision Making. (2019, Nov 23). Retrieved from https://studymoose.com/financial-decision-making-essay